Discussion on an Advertising and Promotion tax for Arkadelphia restaurants and motels has been postponed indefinitely until the City Board of Directors hears more feedback from residents within the city.
City Manager Jimmy Bolt spoke on the topic Thursday during the City Board’s regular meeting, giving a staff-prepared report on two A&P options.
An A&P or “hamburger” tax is collected from restaurants and short-term lodging. The state legislature approved the tax, and allows cities to pass such a tax by city council or approval or by a vote of the people. Restaurants and motels could collect from 1/2 cent to 3 cents per dollar, and the money collected would fund any advertising or promotion of the city. An A&P commission, which could have as many as two aldermen or directors, would be responsible for disbursing the funds.
Or, a voter-approved tax could set up a special parks fund that would limit how money could be spent — only for the development of city parks and recreational facilities. The City Board would disburse those moneys.
Bolt’s report offered those two options, but he added that there are several different ways the city could handle the tax. “There’s a lot of stuff in the middle,” he said, as a voter-approved tax could also set up an A&P Commission.
Discussion of an A&P tax surfaced after Director-at-Large James Calhoun proposed a different way to construct girls’ softball fields at the Youth Sports Complex. The YSC improvements had been included in a bond ordinance that would have renovated the Royal Theatre, but directors voted against it.
Vice Mayor Ann Sanders said she would not be in favor of a tax. “People are taxed to death,” she said. “We’re always looking for tax money. Now we’re collecting a tax I’m not happy with,” she said of the countywide 1/2-cent economic development sales tax.
She added, “We don’t have enough stuff to put this tax on.” She said infrastructure such as city streets and sidewalks should have priority over parks improvements. “Send the older people home … Let the kids use the fields we got.”
She said the only way she would endorse a tax is if voters chose it. “We don’t have that many hamburgers around here. Every time you look around, we got another tax.”
Director Brenda Hagerich said she did not realize there were several different options to distribute the funds. She added that her “largest concern” is that people vote on the tax rather than the City Board impose one.
She said she has walked her ward to talk to people, and has talked with constituents on the phone; and only one person has been in favor of the tax. She said others told her that, if there is going to be a tax, the people make the decision.
Setting up an A&P commission could open up doors that would allow the panel to “engage such personnel and agencies and incur such administrative costs as it deems necessary to conduct its business,” according to the staff report. Also, an A&P commission would act independently from the City Board.
Speaking in regard to the economic development tax, she said hiring personnel reduces the funds available for the main purpose of the tax. She added there are “so many umbrella organizations now, and people are not happy with that.”
Talking about a special parks fund, Calhoun said he would not be in favor of limiting how the funds could be used. He spoke of the city of Magnolia, which has an A&P commission. It advertises in surrounding areas to encourage people to shop there. It also promotes an art festival.
The seven-member A&P panel would hear funding requests, Calhoun said. “There seems to be distrust” for how independent government boards spend tax money. “I believe the economic development group is doing a good job, yet they’re being criticized from all areas.”
Predicting an A&P tax would collect about $150,000 annually, Calhoun added that the money could be used in matching grants as well as for promotion and advertising of the city and its parks system.
“Most cities I go to, I pay this tax,” he added. He named a few Arkansas cities that have the tax: Magnolia, Benton, Caddo Valley, Hot Springs, Little Rock, Texarkana and Bald Knob. “Caddo Valley’s doing quite well” with their A&P tax, he said.
He estimated that about 60-70 percent of the tax would come from people outside the city. He said he envisioned bringing in more sports leagues to the YSC tournaments would increase revenue, as those teams and their parents would eat in Arkadelphia restaurants.
“Surely we can trust that commission,” he added. “If it gets out of hand, we can deal with them, can’t we?” Bolt said there are statutes that allow dismantling of the commission, but he had not done much research on that aspect.
Hagerich said the City Board was putting the “cart before the horse.” She said the city needs more things to attract people before it advertises. Also, “When we compare (Arkadelphia to other cities), we need to look at where we are in comparison.” She said Arkadelphia does not have the festivals that other cities have. “We’re a long ways off from advertising for things we don’t have.”
Director Johnny Harris said most constituent e-mails he has received indicate people had rather vote on the tax. “Since I represent them, that’s what I’d vote for,” he said.
Mayor Chuck Hollingshead said there was a public hearing on the issue a few weeks ago, but no one spoke for or against the tax.
He said he has spoken with 10-20 people in the last four days on the topic. “The people I’ve talked to, no one’s in favor of another tax,” he added. “Elderly people have not had a raise in their Social Security.” In hard times, he said, people will cut out of their budget things they do not necessarily need, and eating at restaurants is one of those things.
He said he would not be in favor of a board-imposed tax, as it is something people “don’t want pushed down their throats.”
He closed, saying that the board should “trust in the people to vote and make the right decision.”
Bolt asked if directors would be interested in pursuing either option. Calhoun moved to postpone any action until the City Board garners more interest on the matter, followed by Hagerich’s second.
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Discussion on an Advertising and Promotion tax for Arkadelphia restaurants and motels has been postponed indefinitely until the City Board of Directors hears more feedback from residents within the city.
City Manager Jimmy Bolt spoke on the topic Thursday during the City Board’s regular meeting, giving a staff-prepared report on two A&P options.
An A&P or “hamburger” tax is collected from restaurants and short-term lodging. The state legislature approved the tax, and allows cities to pass such a tax by city council or approval or by a vote of the people. Restaurants and motels could collect from 1/2 cent to 3 cents per dollar, and the money collected would fund any advertising or promotion of the city. An A&P commission, which could have as many as two aldermen or directors, would be responsible for disbursing the funds.
Or, a voter-approved tax could set up a special parks fund that would limit how money could be spent — only for the development of city parks and recreational facilities. The City Board would disburse those moneys.
Bolt’s report offered those two options, but he added that there are several different ways the city could handle the tax. “There’s a lot of stuff in the middle,” he said, as a voter-approved tax could also set up an A&P Commission.
Discussion of an A&P tax surfaced after Director-at-Large James Calhoun proposed a different way to construct girls’ softball fields at the Youth Sports Complex. The YSC improvements had been included in a bond ordinance that would have renovated the Royal Theatre, but directors voted against it.
Vice Mayor Ann Sanders said she would not be in favor of a tax. “People are taxed to death,” she said. “We’re always looking for tax money. Now we’re collecting a tax I’m not happy with,” she said of the countywide 1/2-cent economic development sales tax.
She added, “We don’t have enough stuff to put this tax on.” She said infrastructure such as city streets and sidewalks should have priority over parks improvements. “Send the older people home … Let the kids use the fields we got.”
She said the only way she would endorse a tax is if voters chose it. “We don’t have that many hamburgers around here. Every time you look around, we got another tax.”
Director Brenda Hagerich said she did not realize there were several different options to distribute the funds. She added that her “largest concern” is that people vote on the tax rather than the City Board impose one.
She said she has walked her ward to talk to people, and has talked with constituents on the phone; and only one person has been in favor of the tax. She said others told her that, if there is going to be a tax, the people make the decision.
Setting up an A&P commission could open up doors that would allow the panel to “engage such personnel and agencies and incur such administrative costs as it deems necessary to conduct its business,” according to the staff report. Also, an A&P commission would act independently from the City Board.
Speaking in regard to the economic development tax, she said hiring personnel reduces the funds available for the main purpose of the tax. She added there are “so many umbrella organizations now, and people are not happy with that.”
Talking about a special parks fund, Calhoun said he would not be in favor of limiting how the funds could be used. He spoke of the city of Magnolia, which has an A&P commission. It advertises in surrounding areas to encourage people to shop there. It also promotes an art festival.
The seven-member A&P panel would hear funding requests, Calhoun said. “There seems to be distrust” for how independent government boards spend tax money. “I believe the economic development group is doing a good job, yet they’re being criticized from all areas.”
Predicting an A&P tax would collect about $150,000 annually, Calhoun added that the money could be used in matching grants as well as for promotion and advertising of the city and its parks system.
“Most cities I go to, I pay this tax,” he added. He named a few Arkansas cities that have the tax: Magnolia, Benton, Caddo Valley, Hot Springs, Little Rock, Texarkana and Bald Knob. “Caddo Valley’s doing quite well” with their A&P tax, he said.
He estimated that about 60-70 percent of the tax would come from people outside the city. He said he envisioned bringing in more sports leagues to the YSC tournaments would increase revenue, as those teams and their parents would eat in Arkadelphia restaurants.
“Surely we can trust that commission,” he added. “If it gets out of hand, we can deal with them, can’t we?” Bolt said there are statutes that allow dismantling of the commission, but he had not done much research on that aspect.
Hagerich said the City Board was putting the “cart before the horse.” She said the city needs more things to attract people before it advertises. Also, “When we compare (Arkadelphia to other cities), we need to look at where we are in comparison.” She said Arkadelphia does not have the festivals that other cities have. “We’re a long ways off from advertising for things we don’t have.”
Director Johnny Harris said most constituent e-mails he has received indicate people had rather vote on the tax. “Since I represent them, that’s what I’d vote for,” he said.
Mayor Chuck Hollingshead said there was a public hearing on the issue a few weeks ago, but no one spoke for or against the tax.
He said he has spoken with 10-20 people in the last four days on the topic. “The people I’ve talked to, no one’s in favor of another tax,” he added. “Elderly people have not had a raise in their Social Security.” In hard times, he said, people will cut out of their budget things they do not necessarily need, and eating at restaurants is one of those things.
He said he would not be in favor of a board-imposed tax, as it is something people “don’t want pushed down their throats.”
He closed, saying that the board should “trust in the people to vote and make the right decision.”
Bolt asked if directors would be interested in pursuing either option. Calhoun moved to postpone any action until the City Board garners more interest on the matter, followed by Hagerich’s second.
